Investments: Episode 14
My friend Don Martelli (@BigGuyD on Twitter) suggested I share some thoughts on "saving for your kids college career." I suspect this will be the first of many, many, many shows where we touch on this topic. There are advisory firms that specialize in college planning so it's a pretty big topic.
Next to retirement, college funding is usually the most important goal for people with children. And while retirement is a much bigger goal, education tends to be much more of an emotional goal.
There are several ways to pay for college:
- Cash from income
- Cash from savings
- Student loans
Popular Savings Vehicles:
- 529 Plans
- UGMA/UTMA Accounts
Things to keep in mind:
- There is no financial aid for retirement
- Teach kids a mindset of value for education. Big name schools are great but they come at a price. Do you need that big name? Is it worth graduating with a mortgage?